- Tether discloses over 120 companies backing its USDT reserves.
- Ardoino reveals $162B in circulation, triggering major community backlash.
- Stablecoin giant moves toward transparency with public investment portfolio.
Tether CEO Paolo Ardoino has revealed a portion of the company’s investment portfolio, offering rare insight into how the stablecoin issuer supports its massive USDT supply. According to a recent tweet, Tether has funded more than 120 companies, and this number is expected to increase in the coming months.
Ardoino posted a screenshot of some of these companies and the address of the Tether site, where all such businesses can now be seen. The reveal indicates a more open road policy that extends beyond the issuance of stablecoins.
Although initially standing out as a USDT issuer pegged to the U.S. dollar, Tether has since come up to issue stablecoins pegged to other assets such as the euro and gold.
These coins are also released on several blockchains, which increases the company’s presence in the market and makes them more useful.
Consequently, USDT is currently at the frontline of the stablecoin world and its market cap exceeds $162 billion.
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Community Pushback Follows USDT Supply Disclosure
The announcement comes shortly after Ardoino disclosed the total volume of USDT currently in circulation. His post, stating that 162 billion tokens have been issued, sparked criticism from some within the crypto community.
Most of those accused Tether of minting tokens without sufficient support, claiming that such an activity resembled central banks’ use of printing unbacked money.
Fears soon spread across social media, with people casting doubt on the reserves supporting the USDT. Even some critics claimed that the whole process was not as transparent as it should have been and that tokens may not necessarily be backed by real assets.
Such fears exist despite Tether’s numerous statements that its reserve holdings consist of U.S. Treasury bills, dollar deposits, and other financial assets that can easily be converted to liquid funds.
Ardoino did not comment metaphorically on a backlash, and publishing the list of part of the company’s investments seems to be a step to gain a strategic advantage.
Depicting the companies it has partnered with, Tether is also trying to gain trust and demonstrate how its reserve model is more diverse than the traditional banking assets.
The recent report on venture investments made by Tether to the USDA raises concerns about how the firm sustains its supply of USDT to its enormous amounts.
As scrutiny continues around stablecoin backing, revealing these financial links could help strengthen trust and validate Tether’s position in the digital asset space.
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